The Forum of Private Business (FPB) questioned councils in the UK over the speed of their payment, a year after the government urged local authorities to settle invoices within 10 days in order to help smaller businesses maintain their cashflows during the recession.
According to the FPB, while some local authorities took instant action and altered their payment policies, many did not.
However, Dave Broadway, managing director at mailing specialist CFH Total Document Services, said: "Nobody pays us in 10 days – most companies have their systems set up for a 30-day cycle anyway. One council we deal with is a bad payer, but most pay in 30 days – I don't think anyone would have a problem with that."
In the report, the FPB warned that there was no hard and fast rule over council payments, with some paying just 1% of bills in 10 days, while others paid well over half in the specified time.
It claimed that small rural councils paid generally much quicker, for example Pendle Borough Council in Lancashire paid 87% of bills within 10 days, while Leeds City Council only managed to pay 13% in the allotted time.
However, Mark Snee, managing director of Leeds-based Technoprint, defended his local council: "We get paid in 30 days, like clockwork, all automatically. I think you can even register for early payment from them if you want to."
Many printers said they preferred working with local authorities because of the speed of their payment, compared to high-street companies and blue-chip firms.
Mark Savage, managing director of Doveton Press, added: "As soon as they get the job we get paid, that's why we like working with the local council."
FPB findings into council payment times:
- Average time for UK council to settle invoice – 19.4 days
- England average – 18 days; Northern Ireland – 37.2 days
- UK average payment within 10 days – 42%
- South Northamptonshire Council paid most bills within 10 days (91%)
- Argyll and Bute (Scotland) and Down District Countil (NI) did not pay any bills within 10 days
